Winner: Chevron plans third tower

Employees: 1,750

The skinny: San Ramon, Calif-based Chevron Corp. (NYSE: CVX), which already has a presence of about 9,000 employees and contractors in Houston, is planning a new downtown office tower to accommodate its expansion in the city, which includes hiring 1,752 workers. In addition, the project will create 2,164 indirect jobs in the Houston region, the Greater Houston Partnership reports.

Chevron will build a 50-story, 1.7 million-square-foot building next door to its existing towers at 1500 Louisiana and 1400 Smith. The buildings will comprise an urban corporate campus with indoor and outdoor common areas, a fitness center and additional parking. Chevron received $12 million from the Texas Enterprise Fund for the relocation of employees to Houston. Chevron’s application for the grant states it will use the money for home-selling costs, a week off for house hunting, an expense allowance for as much as $15,000, travel costs and a bonus. The Houston City Council unanimously passed an ordinance in August designating the Chevron U.S.A. Inc. tax abatement reinvestment zone. The Tax Abatement Reinvestment Zone would encompass 2 acres at 1600 Louisiana and could mean $2.7 million to $3 million for the company in addition to the $12 million from the state.

What’s next? The final investment decision for the project — designed by HOK, an architectural firm with an office in Houston — is expected in the second quarter. Groundbreaking will follow the final investment decision, and occupancy is anticipated to begin in the fourth quarter of 2016.

Finalist: Southwest breaks ground on international terminal

The value: $156 million

The skinny: After working with the Houston City Council for more than a year, Dallas-based Southwest Airlines Co. (NYSE: LUV) broke ground on its international terminal at Hobby Airport. The terminal will be Southwest’s first international terminal, and the carrier plans to operate flights to the Caribbean, Mexico and cities in northern South America.

During initial discussions about the Hobby international terminal, United Continental Holdings Inc. (NYSE: UAL) protested against the project, claiming that it would hurt the local economy. However, a study commissioned by the Houston Airport System found the new terminal would have a positive economic impact on Houston by creating 10,000 jobs and pouring more than $1 billion into the local economy.

Through an agreement between the city and Southwest, the airline will pay the bulk of the costs of the $156 million expansion project. Southwest’s costs include building the five-gate terminal, expanding Hobby’s security checkpoint and upgrading the airline’s ticketing counter area. The city will pay about $55 million for a new parking garage with more than 2,500 spaces and about $12 million in roadway modifications for the terminal.

What’s next? The entire project is expected to be complete by late 2015, when Southwest also plans to begin some international flights.

Finalist: GEICO picks Katy for major expansion

Jobs: 1,000

The skinny: After about an eight-month search, Chevy Chase, Md.-based GEICO leased an existing 135,000-square-foot building in Katy for its 15th major office location in the U.S., where it plans to hire up to 1,000 workers. GEICO, a subsidiary of Warren Buffett’s Nebraska-based Berkshire Hathaway Inc., will invest $8.5 million in the facility — which will serve as a claim operations center — over the next three years. The building — off Grand Parkway and Interstate 10 in Mason Creek Corporate Park — is a major growth area due to the expansion of the Grand Parkway. GEICO said it chose the building due to its exceptional office space, proximity to a high-quality workforce and ideal southern location. Developer Dallas-based Myers Crow & Saviers Ltd. finished the building, which was built on a speculative basis, earlier this year.

Dealmakers: Griff Bandy with NAI Houston represented GEICO in the deal, and Bob Cromwell and Kevin Noland with Moody Rambin represented the landlord, Myers Crow. The Katy Economic Development Corp., led by president and CEO Lance LaCour, offered GEICO an incentive package for job training and recruitment. Parkside Capital, led by President Joe Moody, owns the master-planned business park.

What’s next? GEICO will hire up to 400 new associates over the next year, mostly as entry-level claims representatives. Next year, it will begin recruiting college graduates for its fast-track management development program. GEICO will occupy Mason Creek Office Center I by the end of December.

Emily Wilkinson leads the weekly edition of the Houston Business Journal, including special publications, centerpiece stories, Focus sections and the Deal of the Week. Follow her on Twitter for more.

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